Rupert Harrison, a senior adviser in portfolio management at the bond giant, said Tuesday that Treasuries are now “screaming good value” after 10- and 30-year yields climbed to fresh 24-year
Rupert Harrison, a senior adviser in portfolio management at the bond giant, said Tuesday that Treasuries are now “screaming good value” after 10- and 30-year yields climbed to fresh 24-year highs.
The rise has been driven by persistent inflation concerns, heavy government borrowing and anxiety over the U.S. fiscal deficit.
PIMCO is keeping exposure to duration, Harrison said, arguing that long-dated bonds could provide both attractive income and protection if technology stocks weaken or the economy slows.
5%+ Yields Are Changing the Bond MathThe 10-year Treasury yield eased to about 5.28% Tuesday after surging earlier in the week, while long-term rates remain near levels not seen since the early 2000s.
For investors, that changes the trade-off between bonds and equities.
A Treasury yielding more than 5% offers a relatively high return without the earnings risk attached to stocks. That is particularly relevant for expensive growth companies, because higher Treasury yields reduce the present value of profits expected years into the future.
The move has already pushed the 30-year yield toward levels last seen in 2007, reviving concerns about long-term borrowing costs.
High Debt Is Still the Main RiskPIMCO’s bullish bond view does not mean the forces pushing yields higher have disappeared.
U.S. federal debt has already crossed $40 trillion, while the government is paying roughly $1 trillion annually in interest. Heavy issuance means investors must absorb a growing supply of government securities, keeping the fiscal outlook central to the bond market.
Demand has also weakened in parts of the market. Money-market funds attracted only about $158 billion in net inflows during the first three quarters of 2026, compared with more than $800 billion in previous years, reducing one important source of Treasury-bill buying.
Recent auctions have shown similar pressure. A September five-year note sale recorded its weakest bid-to-cover ratio in nine years, adding to concerns that investors may demand higher yields to absorb additional supply.
